What motivates an employee for recognition of his performance- a piece of paper (i.e certificate) or hike in salary?

Hi jaydeep,

True!! If you are referring to an appreciation as an accomplishment in one domain expertise, then one should forward to getting cross trained in other domains as well. That would make him a good Manager.

Indeed salary is one of the main factors which accounts for the acknowledging the worth of person.  However, when a person reaches at the peak of hike the factors like rewarding with appropriate certificate does motivate a person.

Consider a situation where a soldier fights a battle and earns a Param Vir Chakra; or a Civilian earns Padma Vibhushan can there be any substitution by way of financial rewards. 

Even in case of corporates, a person who is already a president and accordingly drawing salary and if there is marginal increase in salary but the status is somewhat decreased by parting some responsibility.  Can that person accept the hike in salary.

Therefore it all depends on the occasion when hike in salary may be a motivating factor but there are other factors like appreciation/ certificate that would carry more weightage.

Obviously hike in salary what we will do with piece of paper what has so many pieces of paper (certificates) done which we have got at schools and colleges. Nobody even cares about it doesnt matter what you play in your school/college only academic how strong you are really matters. And above all at the end of the month what we want the piece of paper or the salary?

• From employee's point of view, every employee expects salary rise every year, irrespective of his good or bad performance.

• Those who have performed better will obviously expect better increments in salary

• In case employee is Promoted, which means he is pushed up the ladder or hierarchy, he obviously deserves more remuneration.

• In case company does not want to give increase in salary, then do not call it promotion, just call it 'Job Enrichment'

• Generally followed practice is,: in case of Promotion there is something called 'Promotion Increment' or 'Special Increment' plus certain Increased and Additional Allowances and Benefits become applicable due to elevation to higher level / grade.

The truth is that the only benchmark which exists is money.

Now, imagine that you give your employee the kind of promotion you have imagined for him.This guy will feel cheated.

Not only this, it will be difficult to convince his family members also that he has got promotion without hike.He may hide this also from his family and may pretend to spend more, so you are relatively putting a burden on his pocket by promotion him without hike.

Not only this, the peers will eventually come to know this,someday or the other.This will become a topic of mockery for him.

The guy will feel that this is a scheme of HR just to extract more work from me without paying me for the same.This will create a feeling of wrath in him.He will feel justified in being selfish and will carry a negative image of the company. This guy will use his new designation to join a new organization at a higher pay, which is an extremely prevalent trend.

He will carry this image with him for the company and will spread the word to others.From the long-term perspective, the cost of talent acquisition will increase as lesser people will be willing to join the organization in future because of negative employer branding.

Its the "satisfaction", not salary not the certificate - it depends on the individual and his/her condition. If you hike salary OR provide certificate it does not guarantee the consistency in the performance.

SATISFACTION - Affection, courtesy and thankfulness shown to the employee by the employer. And, making him to feel safe and sound.

Then you decide about salary and certificate because, these 2 are default that you have to give for any best performer.